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Rémy Cointreau reports 27.3% FY sales rise
French firm Rémy Cointreau has posted a 27.3% organic sales increase for its 2021/2022 full year, driven by double-digit gains in all regions.
For the year ending 31 March 2022, the Rémy Martin Cognac producer saw sales reach €1.31 billion (US$1.38bn). The company’s fourth quarter recorded an organic sales increase of 4.2%.
In January 2022, the company said it witnessed a ‘strong’ third quarter with sales up 21%. The firm’s sales increased by 52% in the first half of the year.
Rémy Cointreau said its full-year sales performance was due to its ‘unique positioning’ in spirits and ‘strengthened’ investment capacity, which helped the firm benefit from consumer trends and new growth opportunities, including the rise of mixology.
During the second half of the year, the company said it had ‘significantly’ boosted its investments in marketing and communication.
The firm noted that all regions contributed to its full-year growth, including the Americas (up 30%), Asia Pacific (up 35.8%) and the Europe, Middle East and Africa region (up 22.4%).
The Cognac division saw sales increase by 26.3% for the full year, but Q4 revenue fell by 16.7% due to the ‘strict management of strategic inventories’ ahead of sharp price increases on 1 April 2022.
China was also affected by lockdown measures temporarily, but the firm noted that the impact on revenue was limited due to the typically low level of activity over this period.
The liqueur and spirits arm experienced a 31.7% organic sales increase, far surpassing its performance during the previous financial year (up 27.5%), the company added. Fourth quarter sales rose by 9.3%.
During the last quarter, Cointreau liqueur was boosted by consumer enthusiasm for cocktails in the US, while The Botanist gin continued its strong growth in the on-trade, the firm said. The gin brand launched a large-scale campaign during the Super Bowl in February, which helped boost its development.
Scotch whisky brand Bruichladdich reported a ‘robust’ performance in China. The division’s strong growth in Europe was led by Cointreau and Greek spirit Metaxa.
Rémy Cointreau expects a ‘strong start’ to the next financial year, despite a very high comparison basis and an ‘environment in China that remains characterised by the pandemic’.